Leaseweb charging VAT for hardware from another EU VAT registered company
We've been using the Leaseweb collocation service for several years now.
My company, Elvsoft, is VAT registered in EU (Romania), so we're VAT exempt and we're obviously not paying VAT to Leaseweb for collocation services.
We own and ship all our hardware to their data centers.
A few days ago we just happened to need an extra drive and we bought it from Leaseweb. To my surprise they issued an invoice where they charge VAT for the hard drive (21%) - rest of the services on the invoice are still VAT exempt.
The amount itself is small and unimportant, it's just the principle and the fact that I do not want to pollute my accounting with invoices that I consider to be illegal.
I am paying VAT since 2004, I am not a newbie on VAT taxation. I know that they are not entitled to charge VAT on computer parts from our company.
I've contacted them and pointed this and their answer was:
For all sale of equipment we are obligated to add VAT. This is Dutch VAT regulation.
(I've asked for that "regulation" and waiting for an answer)
However, maybe I am missing something. Maybe this law actually exists in the Netherlands (though, in my opinion, it would be against the EU VAT directives, which all EU countries must obey).
Any other Netherlands and EU companies here? What is your opinion on the matter?
A Dutch company is indeed not allowed to issue you a VAT-free invoice lacking proof of export.
That doesn't prevent you from applying for a refund from the government though.
A different procedure for reclaiming VAT on all kinds of business expenses made locally in other EU countries was introduced a while ago.
Think it does qualify under that, but probably not worth the hassle for small amounts.